MONCLER ANNUAL REPORT AT 31 DECEMBER 2020BOARD OF DIRECTORS REPORT 3332

multi-window communications rollouts are tailored to each collection, allowing them all their period of focus. The diverse voices of each designer live on their own, but come together under the one umbrella of Moncler which joins the dots that make up the multiplicity of the Brand s DNA. Each collection is amplified by live events, either real life and dig- ital, at venues ranging from underground warehouse spaces to global art fairs. The result: Moncler Genius has attracted a new community of Generation Z and Millennial customers that make up 40 percent of Moncler s overall consumer base, and more for Genius projects. The Brand is empowered by a new community of youth who aspire to the alliance of innovation and heritage that Moncler uniquely offers.

The arrival of the Covid-19 pandemic forced the marketing team to prove their resilience by reacting with flexibility, sensibility and speed. Since February 2020 a series of activations were launched, some of which are still in place to this day.

The #WarmlyMoncler campaign showcased a heart- warming retrospective of some of the Brand s most loved campaigns. The #MonclerVoices series was born as a production of shot-at-home social media initiatives curated by Moncler s creative family and friends as they gave their personal perspective on what Moncler means to them. Stories of heritage and evolution were told in the Moncler Icons campaign which reminded the audience how some of Moncler s beloved originals have developed through the years to become the must-haves they are today. A dedicated Instagram channel for employees, @MonclerTogether, connected the people of Moncler while they were working together from afar, and entertained them with a schedule of activities for the mind, body and soul, ranging from a book club, to a yoga class, to live dance music performances. At the end of the year Moncler launched its inaugural TikTok challenge, #MonclerBubbleUp, partnering with the platform s superstar creators to reach the rising generation, achieving over 7 billion impressions and communicating with youth worldwide.

A final chapter of 2020 saw Moncler acquire Stone Island, celebrated with a social media, print and out-of-home marketing campaign. Creative visuals announced the acquisition with the tagline Great minds think alike , talking to the synergies of the two Italian brands as they go beyond fashion, beyond luxury. The companies strengthened their ability to interpret the evolving cultural codes of the new generations, reinforcing their positioning within the new luxury segment.

ADVERTISING CAMPAIGNS

Advertising campaigns have been used with industry-defining innovation to convey Moncler s heritage and transmit the dreams that the Brand embodies. When Remo Ruffini relaunched the brand in 2003, he used campaigns to establish the Brand s heritage, and since then has worked with creatives such as Bruce Weber and Annie Leibowitz to develop the intangible ideals that empower Moncler. The Moncler Beyond campaign marked a new step of aspirational marketing, bringing together a group of celebrated partners from different paths of life, age, ethnicity and origin. They transferred the values of the Brand through their personal experiences and became voices of individual strength, culminating in a unified

partly managed internally and partly assigned to third party manufacturers (façon manufacturers).

The purchase of raw materials is one of the main areas of the value chain. All raw materials, not only down but also textiles and garments, must comply with the highest qualitative standards in the industry, be innovative and able to offer advanced functional and aesthetic features. Textiles and garment accessories (buttons, zips, etc.) are purchased from countries able to meet those standards, mainly Italy and Japan. Down is purchased from Europe, North America and Asia.

The cut-make-trim phase is conducted both by third party manufacturers (façon manufacturers) and in the Moncler manufacturing plant, established in 2016 in Romania, that currently employs more than 1,100 people.

The third-party suppliers (façon manufacturers) working for Moncler are mainly located in Eastern European countries, which are currently able to ensure quality standards that are among the highest in the world for the production of down jackets. Moncler supervises these suppliers directly by conducting audits designed to check aspects regarding product quality, brand protection and compliance with current laws, Moncler Code of Ethics (updated in 2017) and Supplier Code of Conduct (approved in 2016).

Moncler currently uses more than 450 suppliers, divided into four categories: raw materials, façon manufacturers, finished products and services. Moncler s top 60 suppliers account for 70% of the value of all supplies5.

DISTRIBUTION

Moncler is present in all major markets both through the retail channel, consisting of directly operated stores (DOS6) and the online store, and through the wholesale channel, represented by multi-brand doors, shop-in-shops in luxury department stores, airport locations and online luxury multi-brand retailers (e-tailers).

Moncler s strategy is aimed at the control of the distribution channel, not only retail but also wholesale and digital, where it operates through a direct organisation.

As of 31 December 2020, Moncler s mono-brand distribu- tion network consisted of 219 retail directly operated stores (DOS), an increase of ten units compared to 31 December 2019 of which two opened in Q4; and of 63 wholesale stores (shop- in-shops, SiS), a decrease of one unit compared to 31 December 2019, considering five conversions from wholesale to retail.

During 2020 the Company opened 10 directly operated stores (DOS), in the most renowned luxury streets and malls, including: the biggest flagship of the Group in Paris (France) on the

Champs Elysées, famous luxury street in the heart of the city;

the first directly operated store in Spain (Barcelona) and in Ukraine (Kiev);

some selected openings in the Unites States and in Europe, including the Canadian and German conversions from wholesale to retail in the stores in Holt Renfrew Calgary, Vancouver and Kadewe Berlin and a new resort in Capri island (Italy).

Moreover, during the year, some of the existing retail stores were relocated in new spaces with a larger surface, including the enlargement of the flagship store in London (United Kingdom).

During the course of 2020, Moncler accelerated on digital transformation and, in line with an increasingly integrated digital vision, internalized the online site (.com) in North America, the second e-commerce site directly managed by Moncler after the Korean one.

Moncler s ability to distribute its products to such a large number of destinations is based on the careful attention it pays to the way in which logistics activities are managed. In this sphere too Moncler is attentive to optimising processes and containing both environmental effects and costs. Since years, Moncler has adjusted the packaging it uses for shipping finished goods, thereby reducing the total volume consumed and optimising the space taken up on the means of transport employed. The Group is introducing a policy to incentivise shipping by sea, which offers a further way to reduce its envi- ronmental footprint.

MARKETING AND COMMUNICATION

Our purpose inspires us to keep changing, whilst always retaining the essence that makes us unique. It s our reason to be: to embrace the extraordinary and discover the genius within. Remo Ruffini, Moncler Chairman and CEO.

Moncler is a company born in the mountains. Born to protect. Born to face extremes. A company whose nature makes it impossible to stand still. So when the fashion world accepted a two-season calendar as a marketing template, Moncler had to break the mould. Since the launch of Moncler Genius in 2018, the Brand has created the fashion industry s most compelling answer to a post-internet world where consumer expectation is shaped at the speed of Instagram. It has pushed for higher peaks, brought other voices in, and embraced its crazy nature.

The world of marketing in Moncler has been revolution- ized. Bi-annual collections are yesterday s news. Moncler has met this reality head-on, creating a buzz machine of content that makes the Brand relevant each and every day of the year. Monthly collections by visionary designers are transmitted from the feed straight to the home. But revo- lutionizing a fashion industry standard hasn t been simple; it has demanded change at every level. At Moncler multiple timelines are tackled at once. With every release, teams organize the realization of a multitude of creative mate- rials including close-up shots, editorial videos and video lookbooks, building daily editorial calendars to disseminate the content over limited periods of time. Multi-channel,

5. Based on Orders Value. 6. Including free standing stores, concessions, travel retail stores and factory outlets.

message of freedom and willpower. 2018 was the start of a new chapter for Moncler with the launch of the Moncler Genius project presented with the motto One House, Different Voices. It made up a creative symposium that brought other voices in to reinterpret Moncler s DNA through their own unique lens. In 2019 the concept developed and began to grow roots beyond the Genius project and throughout the whole Brand. The Genius is Born Crazy campaign starred international icon Will Smith in his first ever fashion campaign and was shot by Tim Walker. Through the actor and musician, Moncler explored the concept of the Genius who manifests ideas which feel unimaginable. The message of the campaign relates to the spark of Genius that creates unlimited possibilities, unparalleled creativity, and allows imagination to thrive in the unknown. The campaign marked a permeation of the Genius concept throughout the Brand as a central principle that empowers Moncler.

In 2020, as a reaction to the Covid-19 pandemic, Moncler concentrated its energies on a series of curated and intimate campaigns to respond to the situation with sensitivity and warmth. Instead of a traditional brand campaign, the market- ing team focused on activations based around interaction and engagement with our community. These campaigns, including #WarmlyMoncler and #MonclerVoices, were crafted to create a more personal and caring tone, and bring the spirit of com- munity into Moncler s activations during the unheralded time.

EVENTS AND FASHION SHOWS

All Moncler events leave a mark. Some leave a legacy. Whether it s store events for valued clients or city takeovers injecting culture into the local ecosystem, Moncler has always strived to ensure its events having an impact in the hearts and minds of attendees. In 2020, the full spectrum of events evolved and took on new dimensions and all shared one language, Moncler s language: One House, Different Voices. The year opened with the revealing of the new chapter of the Moncler Genius program. In its third edition, Moncler Genius kept on evolving and exploring new horizons. The house entered a new phase, going beyond the product and embracing the world of experience while empowering personal communication and bringing connections and emotions from the digital domain to real life. The house of different voices broke its own boundaries by exploring beyond fashion, and giving voice to personal creativity. Moncler Genius joined forces with the iconic luggage brand RIMOWA to unveil a bold new travel concept, Moncler RIMOWA Reflection , showcasing novel innovations in technology and communication in the digital age. The event took place in a vast industrial warehouse on Milan s Via Molise with rooms housing each collection. JW Anderson arrived to the ever-evolving cast with his arrestingly clever vision of gender-defying fashion. He joined the house alongside Sergio Zambon, Veronica Leoni, Sandro Mandrino, Simone Rocha, Craig Green, Matthew Williams of 1017 ALYX 9SM, Fragment Hiroshi Fujiwara, Richard Quinn and Poldo Dog Couture. The Moncler House of Genius could not open in 2020 due to Covid-19, so events and marketing activities evolved to take new phygital and social forms. A live flower workshop with Simone Rocha was broadcast online to celebrate the launch of

31/12/2020 31/12/2019 Net Openings

FY 2020

Retail mono-brand stores 219 209 10

Asia 104 104 -

EMEA (excl. Italy) 61 56 5

Italy 19 19 -

Americas 35 30 5

Wholesale mono-brand stores 63 64 (1)